tv Documentary RT December 8, 2013 11:29am-12:01pm EST
when our reporters were there. hello welcome to vent have to with me katie pilgrim it's been a busy business week we've had the chinese currency the yuan taking over from the euro yes the second most widely used currency in the world we're going to delve into details and get out of his in just a minute or two on that one we're also going to be talking about ukraine because we know the protests that ongoing and it made to the economy it's gone from bad to was is a fragile as it is again we're going to delve into detail on that what we've also got the fact that russia's biggest employer roster melways its slashing jobs what does that mean exactly corporate news to come in house investor mr shawn thomas he went
over the course on us last week he was heading towards a financial so we'll see how he's been getting on but first i want to start with the chinese currency because as i say it's now the second most widely used cars in the world so it's below the u.s. dollar but it's overtaken the euro so what exactly is happened in the last year that can tell you that last bit share of global trade was just over one percent and now we fast forward it's reached almost nine percent so what happened to the euro in contrast will last it had almost eight percent and now it's got just over six percent now this is coming at a time when china is changing things up a bit it's in a state of transition now we know that the state is loosening controls by the exchange rates as well as boring costs as well so i want to get expert analysis so i'm going to speak to david quote he's from motley fool and just see david i want to know one of your i was. introduced it was supposed to rival the u.s.
dollar as the global reserve we've now got the one i have it taking the year i said you think that that dream it's well and truly dead. what a wonderful question i think as far as the euro's concert i mean the euro's probably shot itself in the foot because the countries within the euro zone when they are dealing in international trade that perhaps you know weren't as strong in deciding that the rest of the world should use the euro as the base currency in other words where they want to the buy goods from china they were quite happy to actually buy goods place they knew were stolen so really i think i think the year of the euro the euro zone hasn't been as forceful as they could have been done so there may be you know the euro would have been more freely traded but at the moment i mean the euro is still still quite freely traded in comparison to the un which is not as freely traded because there are still some countries in the world that might say if i want to do business with china i would much rather deal with them using
either the u.s. dollar or some other kind of currency so in answer to your question what is going to happen to the euro that really depends on what the eurozone decides itself because they want to be more forceful or not and david we know the whole reason we discuss money is because it's all about power isn't it and what does this transition mean in terms of power for china we know they are in a transition period at the moment as an economy. that is a wonderful question and this is really the crux of the matter because at the moment china is sitting on around three and a half trillion u.s. dollars worth of foreign reserves now china doesn't really want to increase that amount to foreign reserves which is why it is trying to make the u.n. more tradeable in other words when you buy goods from china china is saying we're going to pack in chinese u.n. so that we don't have to sort of keep on taking in all these foreign reserves now eventually try. as you quite rightly say is going to move from being export led to
becoming more consumer led in other words it will have to spend some of those foreign reserves in order to buy foreign goods but i suspect you know china did really doesn't want to run down its foreign reserves too much but it would much prefer to use the chinese yuan which you can control it so they can print as much chinese yuan as it wants to so they want to start buying goods from the outside world it may or may decide you know that they want to use the chinese yuan to buy that but in order to do that the chinese yuan has to be more freely traded and this is really the first time in which we we're seeing now that the chinese yuan has overtaken the euro in terms of trade finance the next step will of course you know be the chinese yuan being more freely traded around the world and that is also happening because i mean we have all these deals now between the people's bank of china and the bank of england and the european central bank and of course many banks out here in southeast asia yeah times are changing that david quo that thank you ever so much for talking to us always appreciate you coming on the show david
have a great day. ukraine is still enjoying the biggest political crisis in nearly a decade as the fallout over not joining the e.u. free trade zone continues meanwhile the economic state of the country faces collapse if the situation does not stabilize suit with ukrainian born yields soaring the price of insuring against a default on government debt surging there's also the threat of strikes which could further damage the already fragile economy so let's sell speak to david bruno from first national innovation break. down you know what i want to know is how bad is ukraine's financial situation right now is the economy really heading for a d felts. this situation. really. ukraine is running a current account deficit. of g.d.p. . it's june twenty four thousand dollar bonds are paying nineteen percent
interest and what that means is that the markets are expecting and dissipating a default by ukraine so it is a very serious situation the ukrainian central bank. is almost broke and doesn't have any money and won't be able to support the ukrainian currency going forward unless you brain gets credits immediately why is she crying right to not join the legions with the bad and how has that economy benefited by choosing not to do that. the problem with the e.u. agreement was who were the strings all of the strings and conditions that were attached this is why the president signed the deal. there were conditions that the subsidies. that
subsidies stop for the consumption of gas in ukraine that would have been political suicide for the president and that will be sent to germany the one of the goals of the european union is to bring back the revolution and to add the current government leave power that's why they couldn't sign a deal why do you think we all seeing signs many people on the streets right now in ukraine protesting the protesters have allowed a blames they want the rule of law they want to see their country become a prosperous country they look longingly to the west and they say why can't we be like that to some extent you're naive. the looking at europe through rose colored glasses is sick the european union is sick it's falling apart it's twenty five percent unemployment in spain i don't need to talk about greece i don't need
to talk about cyprus the european union has serious financial problems that it cannot resolve the european union is not a panacea but what this really is katie it's a referendum on not not so much the association agreement with the e.u. but a referendum on ukraine itself and the government people are not happy with their lives the economy is shrinking and stagnating and no matter who's in where the economy is not doing well the people are not going to be happy that's why the on the streets they want to change thank you daniel thank you so much indeed for your time we really appreciate the bric countries yes the famous acronym coined by the former goldman sachs economist jim o'neill well he's now created another group of imagine economy is at a set to take the global economy by storm the mint now the bric awaits knows where of course brazil russia india and china and then later joined by south africa the
dream team to make it the brakes but embracing it is one of the countries have experienced disappointing growth and these countries now have some serious competition for all mexico indonesia nigeria and yes the mint now i also break experts by guilds if he thinks the meant is the new brick. no i mean the brics were a category that was created. by someone in the financial system because they had in common that they have high growth rates post breaks or the stock market's dynamism . but you can extend the category of admin it's just actually adding on another group that have a similar characteristic at this particular time but that doesn't mean that the old bricks lost their. trajectory in the world economy
although they have all been showing signs of some weakness. in recent months because the global situation is not good and the crisis in the global system is continuing to work itself out over many years and that affects everyone including the brits. let's get a call and talk about the father this week so little and. small. could be. you know how the jews scream with the traditional display of one side paper display on the system and to a muslims can do device on the one side itself a little in russia and several other european countries israel prices around six hundred seventy five dollars a year up to six hundred dollars in russia which is actually saw it cheaper than competitors like i phone five on the stumps and galaxy s four. largest employer of russian broadway's has put a third of its employees about three hundred thousand on schultz and walking allies the head of them and. says that the part time show is necessary given the current
economic climate of the decline in israel the ace. russia central bank wants masa bank declares bankruptcy proceedings at the supreme court the regulator revoked to find slices two weeks ago seven banks in russia have had their licenses revoked since this sum up when the central bank appointed i knew. all right let's get i have to show on thomas he's poised at the basis desk as always it has thought about what you've been up to so i was just telling everybody about these small find out to us here in russia has been a real calmed down a lot of them getting out of business what does that mean for you. indeed i did i went fifty percent in spirit and fifty percent in gas prom and i'll tell you what this is good news for me from the spinning side of things because there's more than a thousand banks in russia and of course the government kind of doing their clampdown means that the bigger banks v.b. and spirit they are guaranteeing that the assets of the smaller banks which are
being shut down in fact i was part of one of those smaller banks and this is about all that my card is good for. all of that as well but that means they're going to be going to the big banks which is done good for me in fact spirit bank is up one percent this week that did well for me however gazprom down at the three percent. i asked total one hundred fifty four dollars bringing my overall total to twelve thousand four hundred sixty one still up but i lost this week for the first time in a couple of weeks running so some good news and some bad yeah yeah yeah i see lots out this week but you still up. so we need to really kick start this once again because bitcoin was a real when actually it was and as you can to diversify now you can stick with the financials it was either i'm going to stick with the financials i'm going to go one hundred percent all in because of for a couple reasons a with this movement towards the bigger banks that means there's going to be a push for spear banks out things that are going to be good for me plus if you
remember everything kind of slows down and there's not much business happening in the new year so i'm hoping that staying with the financials will be a good decision for me as we push into the new year so that's what i'm going to do sensible has shown we like it very much so i will sit up with all on financials and we see how you get on next week mr tom s. and soon to be back next week as well live in. a b c even all the russian banks my old what is the crisis in ukraine really k.p. and i in that one and seeing how the situation progress is possible small surprises of course and i will indeed be back i expect to see you as well have a fantastic we can enjoy the rest of you we can give us now.
ukraine is in a tough spot right now trying to figure out whether to join the e.u. or the arrangements custom union it would be nice if they would you know maybe allow the populace to vote for their future via referendum but sadly it looks like the politicians will be making a historic decision i can see why some people want to look west and some people want to look east but i don't understand why so-called ukrainian nationalists want so desperately to join the e.u. first off any nationalist groups in the e.u. are automatically demonised as right wing extremists and in the politically correct west patriotism is pretty much a dirty word generally nationalist like their culture and the people who are part of it but if you look at migration trends within the e.u. we see that the slavic part of it is flooding western europe looking for work i have many relatives from the slavic part of the e.u. and almost all of them have to work abroad and might sound nice to be able to work in europe but the reality is that ukrainians will probably be paid even less than bulgarians rumanians to clean toilets in london ukrainian nationalists don't have to like russia or join the customs union or join any bloc of countries but
advocating a future for themselves the e.u. seems absolutely backwards at least to me a fascist my opinion. so the lesson we teach to the world is that the best way to defend yourself is to get yourself a nuclear weapon and of course the biggest culprit of using nuclear weapons and producing nuclear weapons and weapons about struction is my birthplace of the united states and i find it absolutely insane that we sit here and talk about iran suppose of nuclear weapons program when you know the united states is producing every kind of weapon under the sun is spending more than every other military on the planet combined and it's involved in more war and more death and more suffering than every other nation combined and yet it's sitting there on a pedestal talking about other nations developing weapons of mass destruction it is insane that we even allow them to do this the first nation that needs to disarm without question is the united states.
again watching the weekly more of our top stories of the last seven days and some are hailing it as a financial phenomenon and while others have their doubts we're talking about iceland's economy showing cautious growth to being thrown into all the economic terrible back in two thousand and eight and this follows measures that europe's financial chief condemned as suicidal at the times now instead of trying to bail out the banks iceland government let those bags collapse you may recall at the time it also refused to provide any compensation for foreign savers after iceland has delivered or is being no to a vote on that proposal the government did bail a quarter of the population though by waving unpayable debt said also to pursue the banking executives that were guilty of causing the financial crisis in the first place professor of binary economics rodney shakespeare believes iceland setting a remarkable example you must rely on your own national
bank for your own uses for your own real economy and for the spreading and if you don't do that you'll be trapped into debt in the same way that we got greece you've got iceland which you've got every country in the world is being tracked into increasing debt and all that happens is that they increase the levels of the debt and smash the populations down we need a revolt against this global financial system and in its own way iceland is setting a reasonable example thank you iceland. when its latest move eyes and says is prepared to write off a twenty four thousand euros for every household's mortgage to international monetary fund isn't happy though saying it leaves little space for additional debt relief measures but what other european citizens be happy for their tax money to be spent that way r.t. has been gauging opinions in the u.k. and also in germany. i was great yeah. well just to get rid of your debt was
perfect because then obviously you could spend that money on something else i think certainly would help us families just that hurdle that that sort of chunk of money that would make to me well i think would be better for the country when. the economy. is the public that just goes up and i don't think the country can afford it it will be very great to you know everyone could buy a house. i think it's a good thing we used to have laws in germany where you could get subsidies as a home owner but that's a thing of a past this is ok if you didn't get this i think for individual people it would be good news but not for the country you never know where the money comes from for such gifts i says crisis plan though controversial has helped many there stave off financial disaster but here's what happens when government measures don't go so well almost a quarter of people in the live under the threat of poverty that's more than one hundred twenty million people too are the latest additions to the block ball gary
in romania topped the list of europe's poorest countries and next as he can offer reports even the founding e.u. states like italy and are struggling more than ever. marco used to work as a pizza your many talents used to call it the golden skill which would always get you work in rome but it didn't hold true for marco one day he was sacked and has not been fired since he's been living on the street for about four years now and says at forty six he sees little chance of fixing his life he asked us not to reveal his identity. where you live on the street survival is what takes up most of your time simply gets in a shower is a challenge it takes so much time to take care of yourself like a normal person you reach the end of the day and you're exhausted and depressed. would be talian economy going through its longest recession since the second world war over twelve percent of adults are unemployed while four out of ten young people don't have
a job there are no official figures on the homeless we have any type of food that we can get for free from somewhere more italians are beginning to turn to charity and humanitarian aid for help two years ago we had about fifty five percent were foreign minister and the forty five percent today we have about sixty five percent valiant thirty five percent for us complete theory of. everything on the shelves is free given in exchange for points allocated to low income families by the global charity network. most of the food is near its expiration date except for specially labeled eight it's real similar to an ordinary supermarket you've got bread pasta dairy products vegetables and sort of the one thing which really stands out are these packages with signs saying not for sale this is humanitarian aid from the european union and altogether these products make up around
a third of all the stuff here. kerry does is now raising the alarm saying around one third of all italian children are at risk of poverty and are lacking basic essential such as protein rich foods heating and close the skin off our t. rom. meantime huge energy price rises above many households in britain wondering how they'll come by the cold this winter a new government plan aims to reduce the extra cost but even still thousands of u.k. families will struggle to heat their homes tesser a cellar of course it's that time of year again when temperatures drop at a bill sore as the heating comes on. oh. here we are protesting saying that it was i looked up to the choice between eating or heating they're angry at the price increases of the energy companies and the government's lack of action to helping those who are most vulnerable not to mention the comment from downing street that it believes it can't afford to pay the bills
they just simply put on an extra job well this release a million gently as you can map the sea in the wing itself isn't the success it was leaving early keeling and his wife rita keep the heating on for only two hours during the day and five hours at night i do worry. particularly to me then obviously. freedom will. meet all the costs on our own it's affecting every family in this country and this is britain two thousand and thirteen. it's terrible depending on the provider the hike set to take effect this winter could be as high as ten percent with excess widger deaths in england and wales rising by a third to thirty one thousand compared with the previous year six big utility companies are controlling the market and not deciding when to put up prices whether that's above the rate of inflation or not is another question the big six blamed
a rise in wholesale costs but industry regulator off jam said costs rose by less than two percent profits meanwhile have gone up by seventy five percent in the last year alone but these are going to see if you any go to that's what we're going to see to do to play out in really. the pressure. and there's a double whammy the national grid war that energy reserves are dangerously low the risk of blackouts this winter will be higher than it's been for almost a decade but the more pressing problem for many remains simply getting through this winter how many of the. cabinet truly live on the almost sort of money that the week at doesn't make any difference to david cameron or anyone else if those tests are cilia r t london science was supposed to provide us
with abundant resilient crops in the world's genetically modified food appetising so much so that now american supermarkets are expanding lines of g.m. free products well restaurant on is being drawn to dishes that haven't passed through the lab report next looks at whether the shift is giving those biotech firms a headache. in a city with thousands of restaurants yoko kind of maury has lunch at the same place nearly every day oh right yeah yeah every day everybody knows i mean because i love it i want to. hear at four foods the ingredients are natural g m o's are limited as much as possible and the menu caters to an exploding dietary necessity in the u.s. we probably in the past year if we see more people coming directly who are us because we do have gluten free options listed among the top food trends by time magazine the gluten free lifestyle has boomed into
a billion dollar american industry foods books and even bootcamps cater to a g. free clientele doctors are now paying attention to a new phenomenon called sensitivity and what about this gluten free diet it's great there is great no gluten high protein on natural bar the blue is a protein found in wheat and other grain products eighteen million americans reportedly suffer from gluten related disorders while medical experts have dubbed it the next big u.s. epidemic a new report finds genetically modified foods such as soil and corn may be an environmental trigger for the growing health crisis if you look at the nature of the primary toxins crowd and. you can predispose physiology. to student related to sensitivity in fat bees in. immune system brought. the multinational billion dollar company monsanto happens to
be a leading producer of g.m. the seeds are t. reached out to the company a spokesperson said that monsanto is not aware of credible evidence that supports allegations of their products being harmful but the report released by the institute for responsible technology finds that the weed killer known. as roundup used on g m o's also has a negative effect on gut bacteria saxony is insidious because you don't have an immediate acute reaction but it evokes your health slowly over time are chosen outsiders to see. kidney failure that it can actually these have all been shown to be very strongly correlated with the use around are for and so in the meantime monsanto has reportedly spent billions on lobbying to keep g.m.o. foods from being labeled in the u.s. sales in the gluten free food market have reached new heights due to a dangerous health epidemic this comes as monsanto grossed more than thirteen
billion dollars in revenue last year selling products many believe to be responsible for that epidemic in the first place. r.t. new york. how do you say with the few minutes time we go live to kiev where one hundred thousand people are demanding the government's resignation or cameras their reporters to bring up to speed on the week's top stories and with me and next here on r.t. international. what defines a country's success. faceless figures of economic growth. for a factual standard of living.
choose your language. we could know if they feel some of the. treatments that the consensus here can. change the opinions that invigorating to. choose the stories that impact your life choose the access to your office. the torch is on its journey to such. one hundred twenty three days. through to some nine hundred cities of russia. relayed by fourteen thousand people
we are the problem we in the west of the problem especially the united states government so it really is quite ridiculous that we get manipulated into saying oh we have to take care of this problem over there the problem is in our own backyard and we know this. good leverage surely was to build a new most sophisticated. version it doesn't sound anything to mission to teach creation why it should care about humans and. this is why you should care
only. this is tonight an ultimatum for ukraine's president is voiced at a massive protest in the capital where the opposition hoped to gather a million man march to the government is a live pictures from kiev right now going to our correspondent next and fanning the flames of foreign politicians with statement supporting the opposition some even coming to. the government move. a series of clashes the shale gas side in romania seize oil giant chevron suspend operations again. to say fracking will destroy their livelihood. a day of prayer for south africans for their former leader an international symbol of peace nelson mandela we look at how we have.